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Personal Income Tax and Corporate Income Tax changes in Slovenia


The end of 2016 has brought many changes in the field of taxation with personal income tax (PIT) and corporate income tax (CIT). The most important changes are summarized below:

  • Change in the tax brackets for PITAs of 2017 the tax brackets for PIT will be changed. The number of brackets will be increased to five, where the tax rates and the tax bases for the first, second and fifth grade will remain the same. The new third and fourth brackets are introducing lower tax burden for employees with salaries above approx. € 2,500 gross. The amendment aims to relieve the taxation of higher educated employees. At the same time, the increased general tax allowance for low income earners is being introduced, too.
  • Favourable taxation of employee bonuses for performance
    Awards for business performance, which will be paid to all employees in the company, under the same conditions and at the same time not exceeding 70% of the average wage in Slovenia (this currently amounts to approx. € 1,100 gross) will be exempt from PIT. However, social security contributions still have to be paid from the total amount of such awards.
  • Increased CIT rate
    In 2017 the CIT rate increases from 17% to 19%. According to the government, raising this tax rate would cover a budget shortfall of tax revenue, which will result from the revised PIT brackets.